BSP Governor Benjamin E. Diokno reiterated that the central bank is strongly committed in promoting financial stability and consumer protection by advocating the passage of the Financial Consumer Protection Act (FCPA) through active participation in committee hearings and coordination with the Senate.

“Consumer welfare is a continuing agenda of the BSP (and) we enjoin financial institutions, bank organizations, and relevant partners and stakeholders to push consumer protection initiatives forward as the responsibility is too great for any entity to take on singly,” Diokno said.

“This measure enhances the authority of regulators to protect the interest of financial consumers,” thereby boosting public confidence in the country’s financial markets,” he added.

Diokno said the bill, which is pending in Congress, gives the BSP, the Securities and Exchange Commission and Insurance Commission the power to issue cease-and-desist orders without the need for prior hearing.

“This legislative initiative has far-reaching benefits to consumers especially amid the rise in digital transactions,” said Diokno.

Under the FCPA, consumers will no longer need to go to court if their claim involves a return of money from a financial service provider. This translates to a prompt and more efficient process when consumers seek reparation in financial transactions, as warranted by financial regulators.

In cases of undispensed ATM withdrawals, both the depository bank and bank operating the ATM could be liable to cardholders, the BSP said.

“However, when neither is willing to settle a customer’s claim, a consumer may go through the adjudication process and file a claim directly with the BSP,” it pointed out.

The measure also allows regulators to go after financial service providers that are responsible for credit card fraud in online shopping.

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BSP pushes quick passage of financial consumer protection bill
Source: Filipino Daily Inquirer